What is cryptocurrency Compound (COMP) and how does it work?

Compound (COMP) is a decentralized, blockchain-based protocol running on the Ethereum network. Equipped with its own ERC-20 token, COMP, The Compound protocol works as a decentralized application that enables decentralized finance (DeFi) features directly on the Ethereum blockchain. Through the Compound protocol, users are able to either request loans or earn interest by lending cryptocurrencies they own – all through autonomous smart contracts.

In order to incentivize participation on both sides, Compound utilizes its cryptocurrency token, COMP, to reward its users. Each time a user interacts with the Compound protocol – be it borrowing, withdrawing, or repaying a loan – they are rewarded with bonus COMP tokens. This helps to promote active usage of the protocol and ensures a healthy market.

Interested in Compound (COMP), but not sure what it’s all about or where to even begin? No worries. This guide is designed to teach you everything you need to know about the project and get you ready to jump into the most user-friendly trading experience available on the market.